Central defender Terry was an unused substitute for Wednesday's Champions League game against Shakhtar Donetsk as Di Matteo felt he was not match fit.
He is now competing with David Luiz, Gary Cahill and Branislav Ivanovic for a starting spot for the visit of the Reds to Stamford Bridge.
Di Matteo said: "JT is available for Sunday and is in a good position to be involved.
"But I don't think anyone is guaranteed a starting place. They all have to work and be fighting for their place in the team.
"They are all international players and I have a lot of quality in there at a very high level.
"David Luiz has played more than the others but I've been trying to rotate to keep the team as fresh as possible.
"JT is certainly a fantastic player for us and will continue to be so. He is our captain and our leader when he is in the team."